News Corp. Stock Gets Bump From Murdoch Replacement Rumors

Company denies Bloomberg report

Rumors of Rupert Murdoch being replaced as News Corp. CEO have caused company stock in Australia to bounce back from a two-year low, reports the Guardian. Following yesterday’s losses, News Corp. shares jumped by 3.7 percent overnight to $14.69 (AUD) after Bloomberg reported that Chase Carey could be in line to take over Murdoch’s CEO position.

News Corp. is currently denying the rumors, with independent director Thomas Perkins telling the Associated Press, “I can assure you, there has been no discussion at the board level in connection with this current scandal of making any changes. The board supports top management totally. The board has been misled, as has top management been misled, by very bad people at a very low level in the organization.”

According to the Guardian, analysts believe that today’s select committee hearing—at which Murdoch and his son James are scheduled to speak—is unlikely to have a major impact on News Corp.'s shares.

“The Murdochs testifying in front of British lawmakers will doubtless be closely followed, although further significant downside on the News Corp share price as a result of this presumably well-rehearsed pitch alone may prove unlikely,” IG Markets analyst Cameron Peacock told the Guardian.